Velocitydrift

Opendoor saw revenue drop 17.9 percent to $4.37 billion in 2025. However, a quarter-over-quarter transaction rally from Q3 to Q4 has given company leaders – and investors — hope in a return to profitability.

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After a tenuous 2025, which included a major C-suite overhaul and staving off a Nasdaq delisting, Opendoor said it’s on the road to recovery — despite ten-figure losses in the fourth quarter.

The embattled iBuyer’s Q4 revenue dropped 47 percent year over year to $736 million, while net losses widened 896 percent to nearly $1.1 billion. For the full year, revenue dropped 17.9 percent year over year to $4.37 billion. Net loss rose from $392 million in 2024 to 1.3 billion in 2025.

The company significantly reduced its purchases, which fell from 2,951 homes in Q4 2024 to 1,706 in Q4 2025. The same trend held for the entire year, with purchases declining from 14,684 homes in 2024 to 8,241 in 2025. The iBuyer also sold fewer homes during Q4 (-42.6 percent to 1,978 homes) and FY 2025 (-15.7 percent to 11,791 homes).

Kaz Nejatian

During a Thursday afternoon earnings call, CEO Kaz Nejatian acknowledged Opendoor’s challenges but quickly redirected attention to his team’s growth strategy, which focuses on increasing transaction velocity, transitioning to direct-to-consumer relationships, and expanding the iBuyer’s product suite.

“Last quarter, we outlined a four-step plan to transform Opendoor: reach breakeven Adjusted Net Income by the end of 2026 on a 12-month go-forward basis, drive positive unit economics while increasing transaction. This quarter demonstrates we are executing on that plan,” Nejatian said in a written statement. “These results reflect structural improvements in how we operate with more accurate pricing, faster inventory turns, and disciplined selection.”

Nejatian zeroed in on Q3-to-Q4 quarterly gains as a litmus test for what he called “Opendoor 2.0,” with the iBuyer increasing purchases 46 percent quarter over quarter. The iBuyer sold faster, too, with list-to-sale timelines decreasing 23 percent. The iBuyer has been able to keep that momentum, the CEO said, with Opendoor purchasing 537 homes last week.

“The evidence of progress is clear,” he said. “Most significantly, our October 2025 acquisition cohort—both the first full month under the Opendoor 2.0 model and the first with mature sell-through data—is tracking to deliver the strongest contribution margins of any October cohort in company history.”

“And these homes are selling at more than twice the velocity of the October 2024 cohort, with over 50 percent already sold or under resale contract,” Nejatian added. “While our newer cohorts are still early in their sell-through, we like what we see, and our Q1 2026 contribution margin guide post reflects our confidence in the trajectory for the portfolio.”

In addition to improving transaction margins, Nejatian said artificial intelligence and product development are crucial to Opendoor’s path to profitability, with the company rolling out a mortgage product next week. The CEO said his team built the product in 10 weeks, despite estimates that it could take a year or more.

“Opendoor is a different type of company,” he said in the earnings call. “It’s a company where everyone — everyone — is learning how to think like an engineer… Opendoor seeks to build software worthy of [consumer] trust.”

Nejatian urged investors and consumers throughout the call to visit Opendoor’s accountability tracker, which includes product and leadership updates and progress on the CEO’s three key performance indicators, including increasing purchases and margins.

“The goal is simple: Start by generating cash and never be forced to raise equity ever again,” he said.

Despite annual revenue and transaction declines, Opendoor’s quarterly gains seemed to be enough to put wind in investors’ sails. When the markets closed Thursday afternoon, shares in Opendoor were trading in the $4.60 range.

However, after Opendoor published its earnings report, shares jumped to around $5.30 in after-hours trading.

Those prices represent a significant turnaround from a year ago, when shares were nearing the $1 threshold that can get a company delisted from the market. Opendoor’s stock turnaround began last summer thanks to interest from retail investors. Some dubbed the company the latest meme stock, but shares have retained much of the value they picked up during last year’s rally.

Email Marian McPherson

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